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NOTE 13 — OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) <br />F. Actuarial Methods and Assumptions <br />The total OPEB liability was determined by an actuarial valuation as of December 31, 2023, using the entry <br />age normal level percent of pay method. The following actuarial assumptions applied to all periods <br />included in the measurement, unless otherwise specified: <br />Discount rate 4.08% <br />20-year municipal bond yield 4.08% <br />Inflation rate 2.60% <br />Salary increases 3.00% <br />Healthcare cost trend rate 7.75% grading to 4.00% over several decades <br />Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond <br />yield. <br />G. Changes in the Total OPEB Liability <br />Beginning balance <br />Total OPEB <br />Liability <br />$ 1,379,460 <br />Changes for the y ear <br />Service cost 117,053 <br />Interest 55,482 <br />Differences between expected and actual experience (5,761) <br />Changes of assumptions (38,715) <br />Benefit payments (49,708) <br />Total net changes 78,351 <br />Ending balance <br />$ 1,457,811 <br />Assumption changes since the prior measurement date include the following: <br />• The discount rate was changed from 3.77 percent to 4.08 percent. <br />H. Total OPEB Liability Sensitivity to Discount and Healthcare Cost Trend Rate Changes <br />The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability <br />would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point <br />higher than the current discount rate: <br />1% Decrease in Discount 1% Increase in <br />Discount Rate Rate Discount Rate <br />OPEB discount rate 3.08% 4.08% 5.08% <br />Total OPEB liability $ 1,586,501 $ 1,457,811 $ 1,339,991 <br />92 <br />